Largest home insurer in the country no longer offering policies in California (Nice: fit in, 2013)

[CA4Now]

The issue seems much more complicated than it looks on the surface.

It’s bad news that California’s largest home insurance provider, State Farm, decided it’s too risky and expensive to sell new policies in the state. It’s even worse news that State Farm simply publicized what other insurance companies have been doing quietly for several years by refusing to renew policies and pulling out of communities at risk for wildfires.

While there are still more than 100 insurers writing new policies for property owners in the state, State Farm makes up 21% of the market. The company’s decision is worrisome because it shows the continued instability in the market for homeowners insurance, which is essential for people to get a mortgage and to protect their assets. It’s another sign that climate change is driving up the already high cost of living in California and lawmakers need to be far more aggressive in building safer communities.

For decades, California’s coastal and urban areas have made it hard to build enough housing for the state’s population, so developers and residents have flocked to cheaper land near and in the foothills, forests and grasslands that are prone to burn. Half of the buildings destroyed by wildfire in California over the last 30 years have been in what officials call the wildland-urban interface, where homes abut untouched natural areas.

Now, California leaders and property owners have the extraordinarily difficult and pricey task of retrofitting those homes and communities to help them withstand increasingly intense wildfires. (Many of these communities are also dealing with the effects of extreme weather in the form of heavy snow, flooding, heat waves and drought.) State and local officials and residents also have to manage the rising costs of insuring property owners and rebuilding after disasters.

But, California also has to stop making the same poor choices that put so many people in harm’s way. This year, lawmakers began considering Assembly Bill 68*, which...

* https://leginfo.legislature.ca.gov/f...=202320240AB68

https://www.latimes.com/opinion/stor...est-bellwether

[JGC97]

A number of issues are usually more complicated than they look on the surface. Still not a position I'd want to be in. Either sell policies and face the potential of losing money should a disaster strike or face penalties for trying to leave out new construction and resales. Like everything in life, CA4Now, it's all about the money. It's always been about the money.

[aslowdodge]

My friend is an insurance agent and here in Georgia rates are going up because costs are so high now. He said they will be weeding out riskier clients. He said they will all but eliminate new clients.
I just saw my Wisconsin insurance recently just almost doubled.

[JGC97]

That makes sense. If home prices double, it stands to reason the cost to rebuild/repair with supplies will be costlier, thus insurance premiums will be higher. My insurance went up last year. Not exorbitantly but it did go up. I don't mind paying for good insurance but I detest paying more for insurance with sub par customer service. That's what I'm seeing with mine now and I don't like it. Although, if I leave them, I may be jumping from the frying pan into the fire. You never know these days.

[2sleepy]

Originally Posted by HereOnMars

^^ Thank you for that suggestion. I will do that. I'm pretty fed up with my insurance company. I've never put in a claim with my own insurance. Ever. Had to do it on the neighbor's insurance when her dead tree fell on my home in 2021. No problems with it except I made the mistake of calling my insurance to let them know of the incident. You know. FYI. Should have kept my damned mouth shut. Now, I'm getting letters asking for proof I had the repairs done. I think they're looking for a way to cancel me. Or maybe I'm just paranoid. I'll be looking into Hippo. I just hope they aren't like other companies that entice you with a promise of low rates and then, once they have you, start increasing premiums. My health insurance did that. Three increases in 24 months. Phooey on that!

Thanks

I've had them for 4 years, the first renewal rates went up by about $150 a year and a letter of explanation, the rates went up because they had a new underwriter but since they were half the price of my prior insurer USAA I wasn't too worried about it because they were still lower than them. No other increases since, not even after my tree falling calamity. Oh and they give you a security system, it's pretty primitive but you get a discount if you install it. Basically it just sets off an alarm if someone tries to force your door open.

[JGC97]

I like the idea of incentives like a security alarm. Even if it only makes a loud noise. If it scares an intruder, that's okay by me. Definitely going to look into that. If the rates are good, I may bundle with my auto. I like keeping everything together. Makes it easy to remember and at my age, I need all the help I can get.

[2sleepy]

Originally Posted by HereOnMars

I like the idea of incentives like a security alarm. Even if it only makes a loud noise. If it scares an intruder, that's okay by me. Definitely going to look into that. If the rates are good, I may bundle with my auto. I like keeping everything together. Makes it easy to remember and at my age, I need all the help I can get.

I'm not sure they offer Auto insurance but then I never asked. We have auto insurance that we bought through Costco and it's been great, it's also way cheaper than USAA but I was just told that it's no longer being offered in California

[JGC97]

Costco, huh? Do you need to be a Costco member to buy that? Asking for a friend.

[2sleepy]

Originally Posted by HereOnMars

Costco, huh? Do you need to be a Costco member to buy that? Asking for a friend.

Yes, but I don't think you need to continue your membership after you sign up.

[JGC97]

Looks like I've got homework this weekend. Thank you. I'll be looking into numerous companies. Getting a jump on things before August.